- Daily trade volume rises marginally
- Lower offers draw enquiries but bookings limited
Sponge iron prices across India extended their downward trajectory on 11 December, falling by INR 50-300/t d-o-d. The market continued to face pressure as overall trading interest stayed limited and demand remained subdued. Throughout the day, buyers displayed a cautious approach, limiting purchases to essential requirements only.
In the second half of the session, several sellers reduced their offers in an attempt to stimulate buying. This led to a slight improvement in enquiries; however, these enquiries did not get converted into significant bookings. Market participants noted that despite lower offers, buyers remained hesitant due to weak demand conditions at the ground level. As a result, only need-based trades were concluded.
The broader steel ecosystem also remained sluggish, with both finished and semi-finished steel markets exhibiting a dull picture.
Highlights
- The daily sponge iron trade volume increased marginally to around 7,500 t, up from 6,000 t in the previous session, supported by discounted offers.
- Pellet prices in Raipur were unchanged at INR 9,300/t ex-works, reflecting balanced and stable sentiment in the raw materials segment.
Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
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